Accounting Vocab

Front 1

accounting

Back 1

The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the info they need to make good decisions.

Front 2

managerial accounting

Back 2

Accounting used to provide info and analyses to managers within the organization to assist them in decision making.

Front 3

financial accounting

Back 3

Accounting info and analyses prepared for people outside the organization.

Front 4

annual report

Back 4

A yearly statement of the financial condition, progress, and expectations of an organization.

Front 5

auditing

Back 5

The job of reviewing and evaluating the records used to prepare a company’s financial statements.

Front 6

balance sheet

Back 6

The financial statement that reports a firm’s financial condition at a specific time.

Front 7

income statement

Back 7

The financial statement that shows a firm’s profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue) and all the resources that have left the firm, and the resulting income.

Front 8

statement of cash flows

Back 8

Financial statement that reports cask receipts and disbursements related to a firm’s three major activities; operations, investments, and financing.

Front 9

assets

Back 9

Economic resources (things of value) owned by a firm.

Front 10

liabilities

Back 10

what the business owes to others (debts)

Front 11

owners equity

Back 11

The amount of the business that belongs to the owners minus and liabilities owed by the business.

Front 12

fundamental accounting equation

Back 12

Assets = liabilities + owner’s equity; this is the baisis for the balance sheet.

Front 13

intangible assets

Back 13

Long-term assets that have no real physical form but do have value (patents, trademarks)

Front 14

cash flow

Back 14

difference between cash coming and cash going out of a business

Front 15

ratio analysis

Back 15

The assessment of a firm’s financial condition and performance through calculations and interpretations of financial ratios developed from the firm’s financial statements.